Abu Dhabi National Energy Company (TAQA) reported its first half earnings for the period ending June 30, announcing group revenues of AED26.8bn ($7.3bn).
The results are five per cent higher than the previous year, primarily due to higher pass-through bulk supply tariffs and transmission use of system within the transmission and distribution segment.
TAQA also announced that the net income was AED13.5bn, an increase of AED9.2bn, mainly driven by a one-off gain of AED10.8bn recognised on the acquisition of a five per cent shareholding in ADNOC Gas, in part offset by a one-off AED1.2bn deferred tax liability associated with the introduction of UAE corporate income tax from 1 January 2024.
Abu Dhabi National Energy Company results
Net income excluding these one-off items was AED3.9bn, nine per cent lower than the prior period, mainly due to lower contribution from the oil and gas segment.
It declared that adjusted EBITDA for was AED10.5bn, down seven per cent.
This fall was led by a decline in contribution from the oil and gas segment on the back of lower realised oil and gas prices and reduced production.
Mohamed Hassan Alsuwaidi, Chairman, said: “Through its strategic growth during the first half of 2023, TAQA continues to deliver value for its stakeholders.
“The company delivered a strong and consistent financial performance, maintained its investment grade credit rating and ensured good returns for its shareholders through its dividend policy.
“Demonstrating its commitment to continued growth, the company announced the expansion of its portfolio through its plan to acquire SWS Holding.
“This transaction will broaden the scope of TAQA’s activity in the regulated utility business by becoming a fully integrated water and wastewater treatment provider.
“TAQA has also grown both domestically and internationally in 2023, as well as in the renewable energy sector where it has exceeded its 2030 target of having 30 per cent of its generation portfolio coming from renewable sources through the growth of Masdar.
“As such, TAQA continues to showcase the evolution and growth of the utilities sector, underpinned by its strong ESG commitments.”
Jasim Husain Thabet, TAQA’s Group CEO and Managing Director, said: “TAQA’s steady performance in the first six months of 2023 demonstrates the company’s firm commitment to delivering on its promises and growth agenda which is underpinned by the strength of our balance sheet.
“As a low carbon power and water champion, we have delivered on our growth ambitions in the first half of 2023 both inside the UAE and abroad.
“Locally, we have reached financial close on the Mirfa 2 RO plant which will be another utility-scale seawater desalination plant using the low-carbon and highly efficient reverse osmosis technology.
“We announced a nano-filtered sustainable water project alongside ADNOC to support their onshore operations and importantly, we announced that we have signed agreements to acquire SWS Holding.
“Together, these milestones firmly cement TAQA’s position as a regional integrated utilities champion and particularly showcase our water expertise”.
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